Conventional oil-cooled electric machine modules include a steel canister into which an electric machine is mounted. The steel canister in turn is mounted into a cast aluminum housing. There is an intentional radial gap of several millimeters between the outer diameter of the steel canister and the inner diameter of the cast aluminum housing. This creates an oil jacket that traditionally surrounds the outer diameter of the stator lamination stack. Oil flows into this jacket region from a single inlet, splits into two flows, flows circumferentially around the oil jacket, and then exits from the oil jacket through a series of holes in the steel canister. The holes often point toward stator end turns of the electric machine so that the oil sprays on each stator end turn. By gravity, the oil then flows down to a drain around the bottom of the electric machine.